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KPMG sees problems ahead for ringtone market |
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by Stuart Corner
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Saturday, 10 September 2005 |
A paper prepared by KPMG for its clients warns that revenue leakage -
where systems fail to capture the number of downloads at some point of
the delivery chain - is a major issue for the rapidly growing,
multimillion dollar ringtone market. "Our experience in Australia and
overseas indicates that roughly 75 percent of all self-reported
statements from content and platform owners are incorrect, with errors
of up to 15 percent of reported values," KPMG says, adding that
"corporate governance requirements need to be kept in mind and
processes need to be strengthened before there is a major dispute
between the various players in this space over the revenue sharing
arrangements."
The paper says that, in 2003, the Australian ringtone market was worth
approximately $50 million but local providers estimate it will be worth
$120 million in 2005 as a result of demand which is growing at 18
percent, month on month.
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Telecommunications 
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